Nifco (7988) Q2 2025 earnings summary

Executive summary

• Quarterly and H1 FY2024 operating profit and margin reached historical highs, with OP margin exceeding 14%.

• H1 FY2024 net sales were ¥176.2bn, down 1.5% YoY, with operating profit up 21.5% to ¥25.1bn.

• Net income for H1 FY2024 fell 11.2% YoY to ¥15.4bn.

• Comprehensive income increased slightly to ¥30.2bn, up 1.2% YoY.

• Sales remained steady despite the transfer of a German subsidiary and yen depreciation.

Financial highlights

• Q2 FY2024 net sales: ¥90.1bn (-0.9% YoY), operating profit: ¥13.2bn (+25.7% YoY), OP margin: 14.7%, net income: ¥6.6bn (-13.8% YoY), EPS: ¥67.24.

• H1 FY2024 net sales: ¥176.2bn (-1.5% YoY), operating profit: ¥25.1bn (+21.5% YoY), OP margin: 14.3%, net income: ¥15.4bn (-11.2% YoY), EPS: ¥154.22.

• Basic EPS for H1: ¥157.22, down from ¥173.71 YoY.

• Net assets rose to ¥265.8bn, net assets ratio 69.5% at period end.

• Interim dividend per share increased to ¥35.00, with a full-year forecast of ¥70.00.

Outlook and guidance

• Full-year FY2024 guidance unchanged: net sales ¥340.0bn, operating profit ¥45.0bn, OP margin 13.2%, net income ¥26.1bn, EPS ¥262.05.

• Full-year net sales forecast down 8.5% YoY, operating profit up 2.4% YoY.

• Uncertainty in H2 due to potential declines in auto production in Japan, ASEAN, and China, and challenges in bedding & furniture in China.

• Exchange rate assumptions: $1=¥143, €1=¥155.